Sie sind auf Seite 1von 21

blog.wellnesstips.ca/blog/?

p59
http://www.crrconIerence.org/downloads/belz.pdI
http://www.apecovop.org/objstore/Iorum/22/FoodProcessingIndustryInMalaysia.pdI
http://moIpi.nic.in/ContentPage.aspx?CategoryId130

In the 21
st
century, the key challenge Ior the Iood processing organisations is
Sustainability. It gives new marketing opportunities as well as it also involves risks.

Chapter 1

Industry Background
%oday`s entrepreneurs Iace a world oI business opportunities but also a world oI
competition. %hat means Iinding new markets and establishing stability is oIten a
matter oI survival. However, many entrepreneurs aren`t sure where to begin when it
comes to international expansion.

In the past, Iood processing was restricted to preservation, packaging, transporting oI
Iood that mostly involved salting, drying, curdling, pickling, etc. But as the time
passed, the Iood processing market has expanded its extent with the introduction oI
new markets and technologies. It has started producing a range oI new entries like
ready to eat Ioods, beverages, processed Irozen vegetables and Iruits products, sea and
poultry products, etc.
In addition, post-harvest setup like cold storage, Iood parks, packaging centres,
irradiation Iacilities and the modern slaughterhouse was established Ior the processing
oI various Iood items.
http://www.indialawoIIices.com/pdI/Ioodprocessingindustry.pdI

Companies must strive hard in order to thoroughly research the markets they are
targeting on and this task includes:
trying to understand customer attitudes and desires;
Iinding the right local partners;
Iinding out about relevant laws and regulations;
considering appropriate pricing;
identiIying potential competitors; and
gauging other risks.
'We need a good business plan that shows how we serve your customers and make a
return on your investment. We must be willing to be patient and assume that it will
take twice the time and twice the money to establish business in Ioreign place, with a
Iew Iailures along the way, beIore the sales start Ilowing.
'%oo many companies get discouraged and give up too soon but iI we anticipate
hurdles and prepare Ior them, we won`t be as likely to abandon ventures
prematurely. Opening new markets starts with relationship building and realistic
expectations. It`s a strategy that will work Ior the company. Most importantly, we
don`t have to get too low on opportunities that Iall Ilat, because new doors will open
that lead to success.





ood processing industry and its importance
Food processing can be deIined as diIIerent techniques used to alter raw elements into
Iood Ior intake oI human beings.For Iood processing, clean harvested and slaughtered
materials are used to prepare attractive and proIitable Iood products. %he demand oI
processed Iood increases due to change in the liIestyle and attitude and likelihood Ior
diIIerent types oI cuisine. Despite oI the high cost, there will always be a boost Irom
the consumer side due to the inclination towards convenience oI the ready meals.
Convenience is the most important Iactor in ready meals the demand oI the
consumers is shiIted towards convenience as quick and easy meals have become a
high priority.Ready meals are oI great convenience as they can be reIrigerated until
needed.%hese all Ieatures help in providing a Iirm platIorm Ior the Iood processing
industry.Various oIIers and deals attract consumers to buy ready meals and this was
even persisted during recession.But to remain proIitable in Iuture, these oIIers need to
be reduced once the economy is recovered.%he ready meals market is in progression
to a bright Iuture with continuous research and product development.
Due to change in liIestyle, there is an increasing demand Ior convenient and health
Iood. Now-a-days, due to the busy schedule, people do not have enough time to cook.
Processed Iood is made just Ior the convenience oI the consumers.

All Iood processing industry includes agriculture, education, research and
development, manuIacturing, Iood processing, Iood packaging, wholesale and
distribution, marketing, regulation including Iood quality, Iood saIety and industry
lobbing activities, etc. %he most important sector Ior each and every industry is the
Iinance sector.

BENEITS O OOD PROCESSING INDUSTRIES


Availabilty
Food processing industry increases seasonal availability oI many Ioods, it makes
many new Ioods variety and international cuisines available to local masses. It gives
the modern eater easy access to a wide variety oI Iood unimaginable to their
ancestors.
Storage
It enables easy storage and transportation oI more exotic and delicate perishable Iood
acrosslong distance.


Safety
It deactivates the spoilage and pathogenic micro-organisms thus making the Iood
saIer Ior consumption. %he act oI processing can oIten improve the taste oI Iood
signiIicantly
.

Time Efficiency
Processed Iood products are less time consuming as the Iood is already been
processed; we just need to heat the Iood and it is ready Ior consumption.In many
Iamilies, the adults are working away Irom home and thereIore there is little time Ior
the preparation oI Iood based on Iresh ingredients; processed Ioods prooves to be
most useIul Ior these group oI people.
ood Quality
Modern Iood processing also improves the quality oI liIe Ior people with allergies,
diabetes and other people who cannot consume some common Iood elements. Food
processing can also add extra nutrients such as vitamins.

Industry size
In 2004, the worldwide sales oI processed Iood were approximately US $3.2 trillion.
%his value increased to US $6.6 trillion by 2009 and is expected to grow at the rate oI
4.8 annually.

European ood Industry:
%he Iood industry inEurope is broad.It contributes 1.9 to the total economy and
2.2 to the total employment.%he value added to the Iood industry grows Iaster than
the total manuIacturing.In UK, halI a million people are employed every year with a
turnover oI more than 70 billion annually.EU is the largest importer and exporter oI
Iood products.
http://ec.europa.eu/enterprise/sectors/Iood/Iiles/competitivenessstudyen.pdI

Malaysian food industry:
Malaysian Iood can be divided into 3 diIIerent types oI cuisines Malay, Chinese and
Indian. %he Iood industry oI Malaysia is widely diversiIied and has a large range oI
processed Iood with Asian tastes. %here are more than 9000 Iood-processing Iactories
in Malaysia, oI which 95 are categorized as small-scale. Malaysia chieIly owns the
processed Iood industry. Malaysia exports Iood products to more than 200 countries
and the prime products include cocoa, margarine, sea products, etc. Small and
medium scale companies dominate the Malaysian Iood industry. Fish products,
livestock products, Iruits, vegetables, etc are the major sub-sectors in Malaysia. %he
Iisheries products include processed sea products such as Irozen and canned Iishes,
crustaceans and molluscs. Malaysia is a major producer oI spices and was
ranked 6
th
largest producer oI pepper and pepper products in 2010. Agriculture is a
key sector and it includes aquaculture, seaweed Iarming, Iruits, vegetables and
premium-processed Iood having high potential oI growth. Due to an increase in the
awareness in nutrition and Iood IortiIication, the consumers are demanding Ior more
healthy Iood, which is Iresh and less, processed with natural Ilavours Irom plants and
seaIood. Natural Ilavours and Iood additives have a great potential in the Iuture. %he
Halal Iood industry gives enormous chances to the Malaysian manuIactures. %he
main concept oI Halal is to provide high quality products that are cleaned, sanitised
and complies with the religious restrictions. Malaysia holds a Halal certiIication that
is recognised globally.
http://www.mida.gov.my/env3/index.php?pageIood-industries
http://www.agnet.org/library/eb/409/

ood packaging:

Food packaging perIorms a vital role in marketing processed Iood products. %he main
purpose oI Iood packaging is protection oI the Ireshness and quality oI the Iood
product along with saIety and convenience. Food packaging also has to increase the
selling value oI the Iood item when it is displayed on the shelI Ior retailing. So Iood
packaging on a whole has to provide all these Iactors and also has to improve the shell
liIe and increase the brand appeal oI the product. Dealers are very interested in
designing properpackaging system. %he more attractive the packaging looks, the more
it creates curiosity in the minds oI the consumer. %his ultimately Iorces the consumer
to buy the product. Hence it is said, 'Packaging has the role oI a silent salesman.

DiIIerent types oI packaging technologies are used. Introduction oI retort pouch
packaging is one oI the major things that happened in the succeeding years. A retort
pouch can be deIined as a type oI packaging oI Iood, which is created by aseptic
processing having many layers oI laminations which allows sterile packaging oI many
Iood and drink products varying Irom water to Iully prepared meal.Orion Iood
industries Sdn Bhd in Malaysia use retort pouch packaging Ior their ready meals
products. Orion Iood is a wholly owned subsidiary oI the Portwest Group oI
Companies. Orion Iood is a very young company and has been in business only since
1993. %hey have operated mainly locally and have ambitions to spread their wings
abroad.

%he main aim oI this report is to identiIy the key structural Ieatures oI an industry that
inIluence competitionand proIitability.

%he main objective is to establish competitive advantage by analysing customer needs
and preIerences and the ways in which Iirmsshould compete to serve customers. We
also have to identiIy the general sources oI competitiveadvantage in an industry
what we call is the key success Iactors.

ood processed industry is taking over supermarkets as it is best suited for
busy lifestyle people.



























Chapter 2

Orion food

Orion have made signiIicant improvements in the domestic market ever since they
have come into existence. %he company is a processed Iood business and manuIacture
ready meals in pre-packaged sealed containers. In total 387 employees including Iull
and part timers work Ior Orion Iood. %heir target customers are people who have no
time Ior preparing Iood and live a very busy liIe. %he company sells its products
mainly oI Authentic Asian Cuisine, the unique selling point oI its product is that it
doesn`t contains any artiIicial preservatives and are easy to prepare as it only takes 3
minutes to prepare the meal; moreover one portion oI the meal is good enough to
serve one or two people. New products are introduced in the market on a regular
basis.
Mission and vision statement:
Vision oI Orion Iood is '%o list the company on the Malaysian Stock Exchange
(MSE).
Mission oI Orion Iood is to be a leader in the world`s Iood company and provide
nutritious and superior tasting Iood to the people over the globe.
Case brieI
%he main aim oI Orion Iood is to expand its market internationally, mainly in the
Hong Kong, Singapore and Western Europe oI which United Kingdom is oI main
priority. %he company leads in export market and get promising responses Irom them.
Its target is to exceed the local market in terms oI volume within 12 months. %he
company is in its early growth stage oI liIe cycle but have still managed to recover
entire product development costs and in addition enjoys 25 proIit to sales ratio with
a Iorecast oI 29 proIit by the end oI 2012. %he company has been very quiet as Iar
as advertising is concerned. %hey have still managed to achieve good results despite
the Iact that they have not gone all out on advertising. %he pricing policy adopted by
the company is 'Cost-Plus Pricing which is a very straightIorward process where the
company adds proIit to its cost.%he sales team works hard to attain stronger
distribution. A simple but eIIective method is used Ior trading where 90 days is the
promotional platIorm Ior existing accounts and Ior new account 30 days experimental
sale or return policy is oIIered. New and innovative packaging oI retort pouch is used
Ior packaging oI Orion Iood. As per the requirement oI the consumers, any Iood can
be packaged in any size oI pouch. %raditional Malay cuisine is sold in the domestic
market but Orion Iood have limited their products upon Indian cuisine such as
chicken curry, mutton korma, prawn curry, beeI korma and squid curry Ior selling
overseas.Also, Chinese cuisine like sweet and sour prawns and soup and also Italian
dishes have been recently introduced in the Asian market. %he company is more into
direct sales and marketing and have good control on them. Distributors play a key role
in selling the Orion Iood products overseas as well as in domestic market. %he
company is open to changes and provides a speedy response Ior product line changes
in less than 3 months. As per employee welIare is concerned, employees are given
monthly salaries and some beneIits and annual bonuses are also given iI the company
earns proIits. %he operations and the logistics oI the company is well organised and
Iunctions smoothly. %he transportation is outsourced and well coordinated with the
inbound logistics. %he company also holds an ISO certiIication. HR policy oI the
company is to pay 15 more than the market price to the employees, as this is more
proIitable when compared to theamount spend in hiring and training a new staII. %he
staII attrition rate is only 5 and this is mostly due to retirement. %raining and
development programme includes internal workshops, which is held on time-to-time
basis. %he I% system oI the company is very basic.Orion Iood has a great potential to
expand its business internationally. Presently, Orion Iood lack in some areas
internally as well as externally which can be overcome through proper Strategic
Planning, managing domestic and international marketing, updating the InIormation
systems as per the requirements, having proper Human resource management,
analysing and managing the Iinance properly and lastly through Iocussing on
International business.
Competitors of Orion food:
In domestic market, Nestle Bhd and Jasmine Corp Sdn Bhd are the competitors oI
Orion Iood. %hey are leading the market in noodles and rice products.
Strategic Management
International Marketing Management
InIormation System
Marketing Management
Managing Human Capital
Financial Analysis and Management
International Business

HIS%ORY AND ORGANISA%IONAL CHAR% OF %HE COMPANY
Home and Export Markets Diagrams
Sales Revenue
Domestic and Export Financial PerIormance
SWO% and PES%LE ANALYSIS OF ORION FOODS
COUN%RY ANALYSIS OF UK
CONCEP%UAL FRAMEWORKS
PROBLEMS WI%H ORION FOOD
NEED AND SOLU%IONS FOR ORION FOODS
%HINGS %O BE CONSIDERED FOR IN%ERNA%IONAL EXPANSION (LEGAL,
POLI%ICAL)





























CHAP%ER 3
Problems with the company:

Marketing:
One oI the main problems with the company is lack oI promotion oI the products.
%here were no promotional activities conducted ever by the company. Company has
never engaged in above the line advertising i.e. company have never advertised
through any Iorm oI media. %he only medium through which they connect to their
consumers is the company website which proves to be an important sources oI doing
business Ior Orion. %here is an absence oI Integrated Marketing Communications
between the company and its distributors. %o promote the Orion products locally, the
distributors are expected to Iund by their own whether it is in a domestic or an
international market.
Strategy:
%he company also have problems with its strategies used in many Iields. %he main
problem is with the pricing strategy, which is a simple cost-plus technique that proves
to be useIul in the domestic market but may not be viable Ior the new markets. %he
company is likely to Iace problems in Iuture iI they continue to adopt the same pricing
policy abroad as this pricing policy doesn`t takes into account the demand and the
demand oI a product can only be assumed and not guaranteed. %here is an absence oI
high-level planning system and integrated competitive strategy.
Human Resource:
%here is lack oI HR planning. At present, there is no Iormal training procedure set and
the new trainees have to trained themselves through internal workshops which are
conducted Irom time to time. %he only reason why the company has less attrition rate
and attracts so many employees is because the company pays more than any other
local employers. %here is lack oI employee motivation as well as employee welIare
such as beneIits and recognitions.
Information system:
%he company is lagging behind in technology. %he operating system used are very out
dated and as a result oI this do not generate accurate inIormation causing problems to
the management Ior making Iuture decisions. %his can also cause problem in
coordination among sales and production Iigures resulting into Iood wastage that can
ultimately result in loss oI revenue Ior the company.

Operations and Logistics:
%he company outsource transportation that helps in proper coordination on a domestic
ground but this may cause problem when the company will expand and get engaged
in international business.
Aims and objectives of the Company:

Assumptions of Orion foods:

Plan of Analysis:
A. Strategic Management:
http://www.applied-corporate-governance.com/importance-of-strategic-
management.html
1. Strategic Analysis
Strategic Analysis can be termed as the process in which research is conducted on the
organisation and its business environment in which it operates in order to Iormulate
strategy.Various analytical methods such as SWO%, PES%, Porter`s Iive Iorces, GE
matrix, BCG matrix, Iour corner`s, value chain, early warning scan, war gaming
analysis, etc can be used in strategic analysis.
(http://www.cimaglobal.com/Documents/ImportedDocuments/cidtgstrategicanaly
sistoolsnov07.pdI.pdI)

SWOT Analysis:
Company`s strategic choices are aIIected by the strengths, weaknesses, opportunities
and threats oI the company and evaluating these Iactors is termed as SWO% Analysis.
It is a strategic analysis tool that helps in determining the internal and external
environment. SWO% analysis can also help to achieve a company`s goals and
objectives iI it is reviewed periodically. Strength indicates the positive side oI the
company; Weakness means the areas that the company lack in or the areas that makes
a company weak in achieving the target. %o be successIul the company should
overcome its weaknesses. An opportunity can be deIined as the positive choices that
the company has in the external environment Ior growth; %hreats are the Iactors that
acts as a challenge Ior a company that is due to unIavourable trends or developments.
Strength and weaknesses denotes the internal environment oI the company and are
predictable as compared to threats and opportunities that are part oI the external
environment and cannot be easily predicted.
(http://proImsr.blogspot.com/2008/01/swot-analysis-Ior-students.html)

http://www.hicow.com/business/swot-analysis/japan-46361.html

SWO% Analysis oI Orion Food:
Strengths:
Orion Iood is a subsidiary oI a company that has international diversiIied operations
that can prove useIul Ior international expansions.
Orion Ioods are theprocessing Iood leaders in Malaysian market Ior authentic Malay
and Indian cuisine.
%heir products require no reIrigeration and contain no preservatives or artiIicial
colouring thus making the Iood healthy Ior consumption.
%hey come in diIIerent size oI packaging ranging Irom smaller size oI 180 gm to
larger size Ior catering markets.
%hey use retort pouch packaging and because oI this the Iood produced can be
marketed through diIIerent types oI packing such as canning, paper packed, vacuum
packed, etc. %hrough sterilisation, the bacteria are destroyed thus increasing the shelI
liIe oI the product and making the Iood saIe Ior consumption up to 2 years.
Catering institutions and customers like the quality and the price oI the product.
%he employees working Ior the company is its biggest asset as they work as a team.
%heir attrition rate is low thus reducing the cost oI hiring and training oI new
employees.
Weakness:
%he biggest weakness oI Orion Iood is its sales and marketing system. %here is no
above the line advertising and also there is an absence oI integrated marketing
communication between the management and the distributors.
%he HR department oI the company does not Iunction properly.
%he I% system oI the company is weak.
Opportunities:
Changing liIestyle, mixed cultures and people`s likeliness Ior a variety oI cuisines all
over the world can be a big opportunity Ior Orion to expand its market over diIIerent
countries.
Curry has taken over Iish and chips in UK and this can be used as an opportunity to
enter the UK market as Orion Iood specializes in curries.
Threats:
People`s myth about processed Ioods is the biggest threat Ior Orion Iood.
Cultural preIerence oI Iresh Iood.
High taxation rate.
High packaging cost.
GE-McKinsey Matrix
%his matrix is used to perIorm business portIolio analysis and it is a 9-cell matrix
(3x3). %he GE (General-Electric) matrix also known as McKinsey matrix helps in
identiIying the prime business group that can be used as strength Ior the company and
also helps in exploiting the most attractive markets.
Factors aIIecting Market Attractiveness are:
Size oI the market
Growth in market
ProIitability oI the market
Pricing trends
Risk oI returns
Intensity and rivalry oI competiveness
Segmentation
Structure oI Distribution (retail, wholesale, direct)
Factors aIIecting competitive strength:
Assets and competencies strength
Brand strength
Share oI the market
Loyalty oI consumers
Position oI cost structure in comparison to competitors
Strength oI Distribution
Access to Iinancial resources
(http://tutor2u.net/business/strategy/gematrix.htm)

HIGH
Ready-to-eat meals
No reIrigeration
Serve 1 or 2 person
No preservatives
No artiIicial
colouring

Human capital
MEDIUM
Food requires 3
minutes Ior
preparation

Pricing oI the
product.
I% system oI the
company
LOW
Convenient
packaging but
cannot be repacked
once opened
Sales and
marketing team
HR planning

STRONG AVERAGE WEAK
SBU Attractiveness~~~~~~~~
GE Matrix Ior Orion Iood
From the GE matrix, we can know about the areas where we can invest heavily to
grow the business, invest selectively and then expand, develop selectively Ior income
potential, harvest or divest the Strength business units (SBU`s), etc.

BCG Growth Matrix Analysis
Boston Consulting Group Matrix is a tool used Ior product portIolio planning. It aims
on analysing the products and services oIIered by Orion Ioods. %his matrix is based
on the concept oI product liIe cycle that can be used Ior identiIying what product
portIolio oI a business portIolio should be prioritised. %o ensure enduring value, a
business should have a group oI products that have both high-growth products that
needs cash inputs and low-growth products that generates huge amount oI cash and
proIits. It relies on 2 dimensions; market growth and market share. %he idea behind
this is higher the market share oI a product, the better it is Ior the business. When the
products are placed properly in BCG matrix, it results in 4 categories; Stars, cash
cows, dogs and question marks.

http://www.coursework4you.co.uk/essays-and-dissertations/bcg-
growthsharemarket.php
Stars:
Stars have high market growth and market share. It uses large amount oI cash and
generates more proIit thus maintaining the competitive position in the business.
Cash cows:
Cash cows have low market growth with high market share. %he proIits and
generation oI cash is high but since the market growth is low, the investment required
is low. Cash cows are known as the Ioundation oI the company.
Dogs:
Dogs have low market share and low market growth. %he company should reduce the
number oI dogs and these may cause problems in Iuture.

Question marks: prawns
It is worst cash Ieature oI all as it low returns due to low market share. It consumes
great amount oI cash and may ultimately result in stopping dogs to grow.
(http://ivythesis.typepad.com/termpapertopics/2009/03/boston-consulting-group-
matrix-bcg-on-pepsi-co.html)

BCG Matrix Analysis for European market:
Orion Iood is planning to spread its business in European market especially in UK.
Hence it is necessary to analyse the UK market according to the BCG matrix to come
to a conclusion about products that would be proIitable Ior Orion Iood. %he 4
diIIerent products are BeeI, Lamb, Chicken and prawns.












BCG Matrix Analysis for European market

Stars (High market growth/High market share)

STARS
BeeI products

QUESTION MARKS
Prawn products

CASH COWS
Lamb products

DOGS
Chicken products

BeeI products are much liked by the Europeans people. %here are many Iood joints
selling only beeI products. People have a great likeliness Ior it hence it has a great
market share and a great market growth as raw material (beeI) is expensive than other
products.
Cash cows (Low market growth/High market share)
Lamb products have a low market and a high market share in Europe. Lamb products
will give more proIit in comparison to other Iood products. It will have a great
demand in UK and as a result would generate greater amount oI cash that would be
needed Ior the business. %he investment required Ior this product is less.
Dogs (Low market growth/Low market share)
Less investment is needed Ior chicken products but the return obtain will also be less.
Hence low market growth and low market share.
Question marks (High market growth/Low market share)
Huge amount oI investment is needed Ior prawn products, as obtaining raw material is
expensive as compared to other products. %his product can be used Ior a trial period
in European market to see the response and can be withdrawn at a later stage iI do not
generate much cash. %his product has a high market growth but low market share.

Corporate portIolio analysis
2.
3. Strategic implementation- action orientation
4.Experience curve analysis, liIe cycle analysis (%he product liIe-
cyclehttp://businesscasestudies.co.uk/kelloggs/using-new-product-development-to-
grow-a-brand/the-product-liIe-cycle.html),strategic group analysis-porter`s Iive Iorces
6. Analysis oI resources competencies and capabilities
7. strategic plan-recommended strategies



. Strategic choice:












IN%ERNA%IONAL MARKE%ING MANAGEMEN%
1. Analysis of Environmental factors:
Each and every organisation needs to operate with an environment and so does Orion
Iood; they operate internal and external. In order to perIorm environmental analysis,
strategic intent Irom the company has to be very precise and clear. %his can be also
called as environmental scanning, this is the process through which Orion Iood
closely monitors diIIerent types oI environmental Iactors that will help them to Iind
out opportunity and threats through these Iactors.%he main two aspects involved in
this analysis are observing the environment and based on these observations know
about the threats and opportunities.
For Orion Iood,environmental analysis will be an exercise in order to Iind out the
overall environment. %his type oI environment can be Iurther divided into two sub
categories; to Iind out their nature, Iunction & relationship Ior searching opportunities
and threats determining where they come Irom. Few oI the elements may indicate
opportunities and Iew others may signal threats to Orion Iood. %his analysis will tell
us what all things can happen and not necessarily what will happen. %he Iactors that
comprise Orion Iood are as Iollows:
1. Factors inIluencing environment directly;Customers, suppliers and competitors.
2. Factors that will inIluence Orion Iood directly; social, technological, political,
legal& economic Iactors.
Environment analysis plays a vital role in the process oI strategy Iormation.
Environment has to be analysed to check what are the Iactors present in the
environmentand this analysis can be helpIul Ior Iinding opportunities that can lead to
greater accomplishment and also Iind Iactors that may turn up to be threat. %his
analysis provides us time to predict the opportunities and also plan to meet challenges
that would be Iaced. %hus it also tells the company about threats which are awaited.
Orion Iood has to equipthem to meet up the unpredictable changes and Iace the
competition in the growing market.
. International market entry strategies:
%o enter an international market various options such as cost, risk, degree oI control,
etc have to be considered. %he mode selected by the company Ior entering the market
can impact the results signiIicantly. %here are 4 mechanisms through which expansion
into Ioreign market can be achieved;exporting, licensing, joint ventures and direct
investment. Also, there are many diIIerent ways in which an organisation can enter
Ioreign market (in our case European market) either by direct or indirect exporting or
by production in the Ioreign country itselI. %he best market entry strategy Ior Orion
Iood to enter European market is Exporting.

http://www.Iao.org/docrep/W5973E/w5973e0b.htm
Exporting:
It is the most established and traditional way through which an organisation can
operate in Ioreign market. Orion Ioods have to process their Iood in their home
country and then export it to European market. As the Iactory is Ireehold with room to
expand and increase the output and also since the production system has the capacity
oI producing 65 more than what they are producing now, Orion Iood has a good
scope Ior exporting rather than investing money Ior production house set up in
European and other Ioreign country. Exporting has more advantages such as less risk
Iactor to produce in home country in comparison to production in Ioreign country. It
also gives the organisation an opportunity to know more about the overseas market
beIore they plan to invest in masonry. Lastly, it reduces the potential risk to operate in
overseas markets as the Iood is not processed in target market and hence investment
in Ioreign production Iacilities will be not be required. Orion Ioods have to adopt
direct exporting as distributors play a key role in direct exporting. From the time
Orion Iood has been established; distributors are the key operator Ior them.
Distributors do the marketing, assessment oI the market and the competition and also
drive sales Ior Orion Ioods. %here should be proper coordination among Exporter,
Importer, %ransport provider and Government Ior Exporting.

3. Marketing mix Iactors Ior International Marketing.
Orion Iood tries to be a Iood processing company that makes good, simple Iood
McCain strives to be a company making good, simple Iood in an increasingly
sustainable way, while meeting business objectives. %o achieve this, the business
ensures that it balances the Iour elements (the Iour Ps) oI the marketing mix. A
product or service will have its own diIIerent mix oI the Iour Ps. %he right mix
will achieve marketing objectives and result in customer satisIaction:



IN%ERNA%IONAL BUSINESS:
2. Country analysis: %o enter European market, we have to analyse and study the
market Iirst. UK market already has a group oI ready meals manuIacturersand
retailers. %he size oI these manuIacturers and retailers varies Irom international to
smaller premium producers that manuIacture their own brands. Large supermarkets
dominate the sale oI ready meals that ultimately Iorces Ior lower prices and better
quality products. Retailers get maximum revenue Ior medium-sized manuIacturers
hence dealing with them is a greater challenge Ior the company. All these Iactors
can prove to be barriers Ior Orion Iood hence need to be analysed properly.

SWOT Analysis of European food industry

Strengths:%he European Iood industry shows strength in attracting suIIicient capital
and labour. It has openness to the world market and also is open Ior competition.
Weaknesses:European Iood industry is weak in economies oI scale and productivity
oI labour.
Opportunities:DiIIerence in cultures between regions enables exploitation Ior
Economies oI scope` and exploiting these economies oI scale Iully is an opportunity
Ior European Iood industry. Innovative technology such as micro machine processing
and preIerences oI consumer Ior diIIerent and healthy products enhance exploiting the
economies oI scope.
Threats:Low population growth hence lower increase in the demand oI quantity is a
biggest threat Ior the European Iood industry. %he retail chains are increasing and this
can be a threat. Restrictions on production oI raw materials and competition
obstructing enterprise policies are policy threats Ior the Iood industry.







In order Ior them to attract the market abroad they need to put some eIIort in
promoting its product and create brand awareness among the people. As the case
study has emphasised the Iact that there is an absence oI integrated marketing
communications, the company needs to rethink their policy and try to communicate
with their customers and create a relationship, this will help create brand value.
(Brand image, brand values and other aspect oI customer relationships will be
assessed later in this assignment)
%he company needs to assess the UK market and adopt a strategy to penetrate the
market. %here are diIIerent ways by which the company can choose to penetrate
(%arget) its customers. Penetration by age Ior diIIerent types oI ready meals is
relatively similar across the diIIerent age groups. However, levels are slightly lower
in the 15 to 19 years-old age group, possibly because people belonging to this
particular age group were more likely to have meals bought Ior them. People in the 34
to 44 years old and 45 to 54 years-old age groups are the only two groups to have
higher penetration levels Ior ready meals. As these includes the working class.
(DiIIerent marketing modules will be used in order to get a better understanding oI
the market and company)
(DiIIerent Pricing Strategies will be taken into account while assessing the
assignment)

%he distributors are the Iace oI the company as they are the ones who represent the
company and help generate sales; by keeping the distributors happy the company can
not only generate proIits but also ensure that they stick to the same distributors home
and overseas which can be very helpIul.
%here needs to be a proper HR system in place which can help appoint right
individuals and can take the company Iorward.
A new system needs to be in place which can help the manuIacturer to produce the
stock in proper amount and hence the Ilow oI the products in the supply chain will
help the operations to run smoothly.


Conclusion: bttp:JJwww.agnet.orgJlibraryJebJ9J